Total asset turnover measures
A)Liquidity
B)The company's ability to use its assets to generate sales
C)The quality of assets
D)Profitability
E)Both profitability and the company's ability to use its assets to generate sales

Question

Quizplus · Accepted Answer

Total asset turnover measures the company's ability to use its assets to generate sales. It is a ratio that shows how efficiently a company can use its assets to generate revenue. Higher turnover ratios indicate that the company is generating more sales per dollar of assets, which is typically a positive sign for investors.

Total Asset Turnover Measures